2		Thai, Businesses, Cambodia

The Nation recently had an article with concerns being expressed over relations:

"Despite reports of no effects now, the situation could degenerate quickly. Aside from supportive measures, the government should try to end this conflict quickly through diplomatic means," Federation of Thai Industries official Thaworn Techakraisri said yesterday.

Matichon Weekly, Page 10, November 13-19 also had an article on this which is summarized below:

After Hun Sen appointed Thaksin as economic adviser, Thailand retaliated by recalling their Ambassador, and then later Cabinet approved, in principle, the canceling of MOUs. There has been an increase in nationalist feelings and Abhisit's poll ratings. This has meant trade between the two countries has become like a "boxing ring".

This has caused concern in the Thai business community, whether it is small traders who are involved in the export/import industry on the border or bigger businesses involved in tourism, manufacturing in Cambodia, or Thai investors. This is even though many of the big Thai businesses with investments in Cambodia have deep relations with people on the Cambodian side.

While some in the Thai business community are happy with the Abhisit government response to Cambodia, many others are concerned and are hoping for a resolution of all problems within one month.

Siam Cement Group, Charoen Pokphand Group, Thai Beverage, Osotspa, Samart Group, Bangkok Airways among others have investments or large trade with Cambodia. They are watching the situation closely. A source from Osotspa, a large seller of goods in Cambodia, is that they don't expect that the situation will have an impact on popularity of Thai goods.

There are concerns and some are worried, but overall expectations are that in the long-term there will be little effect.

BP: These large businesses are politically influential so this is another reason why you are likely to see no further escalation.